Historic, Archive Document
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lAi Department of
Agriculture
£3
Agricultural
Cooperative
Service
5
Marketing Operations
of Dairy Cooperatives
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C7.
ACS
Research
Report 40
Marketing Operations of Dairy Cooperatives
Thomas H. Stafford and James B. Roof
Cooperative Marketing and Purchasing Division
Agricultural Cooperative Service
U.S. Department of Agriculture
Abstract
The Nation’s 435 dairy cooperatives marketed 95.6 billion pounds
of milk, or about 77 percent of all milk sold to plants and dealers in
1 980. There were 1 46 cooperatives with no milk handling facilities, 97
with only milk and cream receiving stations, and 1 92 operating 456
dairy processing and manufacturing plants. Cooperatives sold about
1 6 percent of the Nation’s packaged fluid products, 1 0 percent of the
ice cream, 64 percent of the butter, 87 percent of the dry milk
products, 22 percent of the cottage cheese, and 47 percent of all
other cheese made in the United States. Additional data is given for
prior years on transportation, producer payroll, and financial
operations.
Key Words: dairy, cooperatives, marketing, structure.
ACS Research Report 40
July 1984
Preface
Information for this study came primarily from a mail
questionnaire sent to all U.S. dairy cooperatives. In addition, some
data were estimated from operating statements or other data, most
supplied by cooperatives for the annual Agricultural Cooperative
Service (ACS) survey of farmer cooperatives.
The 1 980 data were for the cooperatives’ last fiscal year ending
before April 1 , 1981 . Because cooperatives have different fiscal years,
their data reflect some differences in time periods. But by using
annual data, the effect of variations among cooperatives because of
different time periods is reduced. Also, the 1 973 data were from a very
similar mail survey covering the fiscal year ending before April 1 ,
1 974; thus effects of time differences on comparative data are
minimal.
In the report, a number of comparisons are made of regional
cooperative operations based on cooperatives’ headquarters
locations. Since many of the larger cooperatives may have significant
operations in regions other than where headquartered, there are a few
cases where data may not accurately reflect the level of cooperative
activity in a particular region. Care should be taken when making
comparisons on a regional basis since different analyses throughout
the report used different regional alignments.
Acknowledgment is made to other individuals and agencies who
provided assistance and helpful advice in making this study, most
particularly George C. Tucker and William J. Monroe, retired senior
agricultural economists, ACS; K. Charles Ling and Lloyd C. Biser,
agricultural economists, ACS; and the staff of the Dairy and Cold
Storage section, Estimates Division, Statistical Reporting Service,
U.S. Department of Agriculture.
Both dairy cooperative members ’farms and their cooperatives are increasing in size and
efficiency. Over 1, 000 cows are milked on this farm of a member of Dairymen 's Cooperative
Creamery Association, Tulare, California.
Over 100, 000 gallons of milk can be packaged each day at the Springfield, Virginia plant of
Valley of Virginia Cooperative Milk Producers Association.
Contents
HIGHLIGHTS iv
Cooperative Industry Profile 1
Milk Receipts and Utilization 6
Supply, Location, and Grade 6
Supply by Source 11
Utilization of Milk Supply 13
Milk Assembly, Hauling, and Producer Payroll 13
Milk Assembly 13
Trucking Arrangements 14
Producer Payroll 14
Plant Operations 15
Dairy Products Marketed 17
Raw Whole Milk 17
Butter 17
Dry Milk Products 19
Cheese 19
Packaged Fluid Milk Products 21
Cottage Cheese 21
Ice Cream and Ice Milk 23
Bulk Condensed Milk Products 23
Condensed Whey 24
Dry Whey 24
Frozen Product Mix 24
Cooperative Concentration Ratios 24
Distribution at Retail 25
Financial Profile 26
TABLES 29
iii
Highlights
Dairy products accounted for nearly 28 percent of the value of all
agricultural cooperative marketings during 1 980. At the same time,
dairy cooperatives received or bargained for more than three-fourths
of all milk sold by farmers to the Nation’s plants and dealers.
The number of dairy cooperatives dropped from 592 to 435
between 1973 and 1980, a decline of 27 percent. In 1980, 192
cooperatives were processing and manufacturing dairy products,
down from 291 in 1 973 and 856 in 1 964. The number of cooperatives
selling raw whole milk fell from 730 in 1 964 to 458 in 1 973 and to 352
in 1980.
Cooperatives’ share of total volume sold by farmers to plants and
dealers rose from 76 percent in 1 973 to 77 percent in 1 980. The
volume of milk marketed by cooperatives increased in all regions
except the Middle Atlantic Region. Cooperatives marketed 79 percent
of the Nation’s grade A milk, a slight decline from 1973’s 81 percent,
but marketed 57 percent of the manufacturing grade milk, up from 55
percent in the earlier year. About 60 percent of total cooperative
volume, including intercooperative sales, was sold as raw whole milk,
a substantial decline from the 69 percent sold raw in 1 973.
About 33 percent of cooperatives’ total producers receipts was
shipped less than 25 miles to the plant of first receipt. Another 40
percent was shipped from 25 to 75 miles away and 27 percent beyond
75 miles. Thus, milk needed to be shipped farther in 1 980 than in
1973.
Contracts between cooperatives and haulers were reported by 59
percent of cooperatives providing information on trucking
arrangements. While 37 percent of these cooperatives also operated
their own trucks, they hauled only 1 9 percent of the total cooperative
milk supply.
Dairy cooperatives owned 698 plants in 1 980. They operated 242
of these plants only to receive and ship milk. Cheesemaking was
carried on in 1 74 plants, the most frequently performed
manufacturing function. Other major operations included packaging
fluid products in 1 23 plants and manufacturing dry products in 1 22
plants. Butter was made in just 95 plants, down sharply from the 1 70
plants that made butter in 1 973.
Cooperatives’ net sales of butter, dry milk products, and cheese
increased from 1 973 to 1 980. While their share of national butter
production declined from 66 to 64 percent in this period, cooperative
sales increased by about 1 28 million pounds. The cooperative share
and production level of dry milk products (nonfat dry milk, dry
IV
buttermilk, and dry whole milk) increased from 1 973 to 1 980,
reaching 87 percent of the Nation’s output. Cooperative sales of
cheese more than doubled during this period. The 1 .87 billion pounds
marketed represented 47 percent of the Nation’s manufacture, up
from 35 percent in 1 973. Sales of packaged fluid milk products
continued to increase both in volume and share of market. The 8.2
billion pounds marketed was 1 6 percent of the Nation’s production,
up from 1 2 percent in 1 973. Cooperative sales of cottage cheese and
ice cream as a percentage of national production increased to 22
percent and 1 0 percent, respectively. In 1 980, cooperatives marketed
only 7 percent of frozen product mix and 1 5 percent of bulk
condensed milk. However, they marketed 81 percent of the Nation’s
production of dry whey.
Most dairy cooperatives continue to be relatively small business
organizations. However, through consolidation and growth, an
increasing amount of dairy products was sold by larger cooperatives.
The 20 largest dairy cooperatives received two-thirds of all grade A
milk marketed through cooperatives. About 68 percent of cooperative
milk processing and manufacturing was carried out by the 20 largest
cooperatives with plant operations.
v
High capacity milk receiving area at Dairymen ’s Cooperative Creamery Association, Tulare.
Marketing Operations
of Dairy Cooperatives
Thomas H. Stafford
and James B. Roof
Agricultural Economists
Dairy farmer owned and operated cooperatives continue to provide the
most significant channel for marketing milk from the Nation’s dairy farms.
In line with trends both in the rest of the industry and among dairy farms,
these cooperatives are becoming fewer but larger. In addition, cooperatives
are processing, manufacturing, and marketing a larger proportion of the
Nation’s dairy products.
This report, the fourth in a series of periodic appraisals of the scope and
performance of dairy cooperatives, describes their continuing adaptation to
an ever-changing marketing environment.
COOPERATIVE INDUSTRY PROFILE
Between 1973 and 1980, the number of dairy cooperatives decreased from
592 to 435, a decline of 27 percent. This was a slower decline than the 52-
percent drop recorded from 1964 to 1973. In 1980, more than 80 percent of
all dairy cooperatives were in the West North Central, East North Central,
and Middle Atlantic Regions (table 1 and fig. 1). Greatest reduction in
number of dairy cooperatives between 1973 and 1980 was in the West North
Central Region, where the number dropped from 184 to 124, a 33 percent
decline. The number in the South Central Region decreased from 15 to 13
cooperatives, a reduction of only 13 percent.
In 1980, 192 cooperatives processed and manufactured dairy products— 44
percent of all dairy cooperatives. This was slightly less than the 49 percent
recorded in 1973 when 291 cooperatives were processing and
manufacturing. More than four-fifths of this decline occurred in the East
and West North Central Regions.
Although the number of cooperatives operating only milk and cream
receiving stations declined from 130 in 1973 to 97 in 1980, they continued
to represent 22 percent of all dairy cooperatives. Seventy-seven of these
cooperatives, nearly 80 percent, were in the West North Central Region.
Only four cooperatives still received cream directly from farmers.
1
Figure 1 : Number of dairy cooperatives by geographic regions,
1980. (Based on headquarters location)
Mountain
15
West North Central 124
2
New England 12
Middle Atlantic 110
3
While cooperative numbers are decreasing, those remaining tend to be larger and more
efficient. New facility of San Joaquin Valley Dairymen, Los Banos, California.
4
Cooperatives that did not physically handle milk and other dairy products
increased from 29 to 34 percent of all U.S. dairy cooperatives, continuing a
trend also observed from 1964 to 1973. Again, as in 1973, more than 60
percent of these cooperatives were in the Middle Atlantic Region. In 1980,
the group as a proportion of all cooperatives increased from percentages
tabulated in 1973 in all regions except the Pacific and the South Central.
The number of cooperatives marketing selected major dairy products
(table 2) declined or remained the same in all regions except the Middle
Atlantic, where there was an increase between 1973 and 1980 in
cooperatives marketing cheese, butter, and nonfat dry milk, and in the
South Central and Pacific Regions where there was an increase of one each
in cheese marketing.
More cooperatives continue to sell raw whole milk in bulk than any other
product. While the number declined from 458 in 1973 to 352 in 1980, the
proportion of dairy cooperatives performing this activity increased from 77
percent in 1973 to 81 percent in 1980.
Among the dairy product marketing activities surveyed the distribution of
bulk cream declined the most in the past 7 years. Between 1973 and 1980
the number distributing bulk cream decreased from 208 to 122, a decline of
41 percent. Only 28 percent of cooperatives marketed this product,
compared with 35 percent in 1973.
Butter was distributed by 148 cooperatives, a 29 percent decrease from the
207 in this business in 1973. About a third of all cooperatives distributed
butter.
The smallest percentage of decrease in number of cooperatives occurred in
those distributing cheese and nonfat dry milk, with a 16 percent decline
from 1973. In 1980, 36 percent of all cooperatives distributed cheese, up
from 32 percent in 1973 and 24 percent in 1964. About 1 1 percent of all
cooperatives distributed nonfat dry milk, up from 10 percent in 1973 but
down from 17 percent in 1964.
Nearly 14 percent of all cooperatives distributed packaged fluid milk
products, about the same proportion as in 1973. In line with industry trends,
the number of cooperatives packaging fluid products decreased by about 30
percent, from 85 to 59.
Cooperatives distributing ice cream and cottage cheese declined by slightly
more than one-third in the 7 years, with 38 cooperatives selling ice cream
and 42 selling cottage cheese in 1980.
5
MILK RECEIPTS AND UTILIZATION
In 1980 cooperatives received or bargained for 95.6 billion pounds of milk
(net of intercooperative transfers), or almost 77 percent of total volume
sold by farmers to the Nation’s plants and dealers (table 3). Cooperatives’
share of this volume increased by slightly less than 1 percent between 1973
and 1980, representing a leveling out of the longer term trend toward an
increased cooperative market share. In line with the Nation’s increasing
milk production, the volume marketed by cooperatives increased 15 percent
in the period.
Cooperatives’ share of the market varied considerably by region, based on
their headquarter locations (fig. 2).
The Central Region, with the largest number of dairy cooperatives had 64
percent of total U.S. cooperative milk volume in 1980, down from 65
percent in 1973. Between 1973 and 1980 the volume of milk marketed by
cooperatives headquartered in the region increased from 54.3 billion
pounds to 61.7 billion pounds. The cooperative’s share of all milk sold to
plants and dealers in this region continued a steady increase, from 85
percent in 1973 to 89 percent in 1980.
An earlier trend to lower cooperative volume and cooperative share in New
England was sharply reversed in the 1973-80 period. In 1980, cooperatives
headquartered in the region sold 4.3 billion pounds of milk to plants and
dealers. This represented 99 percent of the total poundage.
Cooperative volume and the cooperative share of all milk declined in the
Middle Atlantic Region. In addition, the cooperative share of milk
marketed in the Mountain Region declined slightly, although cooperative
volume increased.
Cooperative volume and the cooperative share of all milk marketed
increased in all other regions, with a significant increase in the Pacific
Region.
Supply, Location, and Grade
Almost 32 percent of total milk received directly from producers and
marketed by cooperatives came from farms in the East North Central
Region (table 4 and fig. 3), a slight increase over the percentage in 1973.
Farms in the West North Central and Middle Atlantic Regions supplied 19
and 13 percent, respectively, of the total cooperative supply, a slight decline
6
Figure 2: Total milk sold to plants and dealers and cooperative’s
share of total by geographic regions, 1980.
(Billion pounds)
Pacific
Total: 17.2 bit. lbs.
Co-op Share: 77%
Mountain
Total: 17.2 bil. lbs.
Co-op Share: 57%
7
Figure 3: Cooperatives share of milk marketed based on farm
location and grade, and total milk marketed, by re-
gions, 1980.1
Pacific
Grade A
Mfg.
Grade
Total (bil. lbs.)
16.5
0.6
Co-op Share (%)
57
46
West North Central
Mfg.
Grade A Grade
Total (bil. lbs.) 12.8 8.6
Co-op Share (%) 92 71
West South Central
Mfg.
Grade A Grade
Total (bil. lbs.) 6.1 0.2
Co-op Share (%) 85
8
East North Central
Mfg.
Grade
Grade A
Total (bil. lbs.) 28.0 7.6
Co-op Share (%) 93 53
New England
Mfg.
Grade A Grade
Total (bil. lbs.)
4.4
—
Co-op Share (%)
82
—
Middle Atlantic
Grade A
Mfg.
Grade
Total (bil. lbs.)
19.0
0.1
Co-op Share (%)
62
87
East South Central
Grade A
Total (bil. lbs.) 5.0
Co-op Share (%) 84
Mfg.
Grade
0.7
12
South Atlantic
Mfg.
Grade A Grade
Total (bil. lbs.) 9.1 0.2
Co-op Share (%) 81
'Regions based on location of members’
farms.
*Not shown to avoid disclosing individual
cooperative operations.
9
Figure 4: Utilization of cooperatively marketed Grade A and
Manufacturing Grade milk, by regions, 1980.
(Billion pounds)
Central
Grade Mfg.
A Grade
10
from the previous survey. Just over 91 percent of the supply of
cooperatives’ manufacturing grade milk came from farms in the two North
Central Regions— 55 percent from the West North Central Region and 36
percent from the East North Central Region.
Reflecting the continuing conversion from manufacturing grade milk to
grade A production and the generally increased production of grade A milk,
cooperatives marketed about 21 percent more grade A milk for their
member-producers and about 18 percent less manufacturing grade milk in
1980 than in 1973.
The 420 cooperatives that marketed milk for individual farmer-members
represented 97 percent of all dairy cooperatives, with the other 15 being
federations of cooperatives. Some 322 cooperatives marketed grade A milk
for farmer-members and 228 marketed manufacturing grade. In 1980, their
direct marketings of grade A milk for their producers totaled 83.3 billion
pounds or a market share of 79 percent of all grade A milk, a slight drop
from the 81-percent share in 1973. In the same year, cooperatives marketed
11.1 billion pounds of milk of manufacturing grade, a slight increase of from
55 to 57 percent.
The proportion of grade A milk marketed by cooperatives varied from 57
percent in the Pacific Region to 93 percent in the East North Central
Region. From 1973 to 1980 significant increases in quantities marketed and
in cooperative share of grade A marketings were found in the New England
(19 point share increase and 42 percent more grade A milk) and Mountain
(10 point share increase and 49 percent increase in quantity) Regions. On
the other hand, the Middle Atlantic Region lost 15 market share points and
5 percent of the cooperative volume of grade A milk. However, this region
did have an increase in both cooperative market share and quantity
marketed of the small amount of manufacturing grade milk produced in the
region.
Supply by Source
In 1980, nearly 88 percent of the 107.9 billion pounds of milk received by
dairy cooperatives came directly from farmers, up from 84 percent in 1973
(table 5). Most of the remainder came from other cooperatives.
Cooperatives in the Central Region received more than 91 percent of their
milk directly from producers, whereas in the Western Region cooperatives
received only 84 percent of their milk directly from producers (see fig. 4 for
makeup of regions). In 1980, 332 cooperatives received 94.9 billion pounds
of grade A milk from all sources. There were 230 cooperatives that received
11
Trailer train for over the road milk transport prepares to load at San Joajuin Valley
Dairymen ’s plant, Los Banos.
12
13.0 billion pounds of manufacturing grade milk, a decrease of 98
cooperatives from the earlier survey.
As in 1973, one in every five cooperatives receiving grade A milk in 1980
received some from other cooperatives. One out of seven cooperatives
receiving manufacturing grade milk now receive milk from other
cooperatives.
Utilization of Milk Supply
In 1980, 107.9 billion pounds of raw milk was received from all sources by
the 430 cooperatives reporting milk receipts (table 6). Sixty percent of the
total cooperative volume, including intercooperative sales, was sold as raw
whole milk, down significantly from the 69 percent reported in 1973.
The 332 cooperatives marketing grade A milk sold about 65 percent of their
total supply as raw whole milk, down from 77 percent in 1973. As in the
earlier period, cooperatives sold only a fourth of their manufacturing grade
receipts as raw whole milk. Cooperatives in the Eastern Region sold 71
percent of their total milk supply as raw whole milk, compared with 53
percent in the Central and 56 percent in the Western Region.
MILK ASSEMBLY, HAULING, AND PRODUCER PAYROLL
In the 1980 survey, cooperatives were asked the distance between the
producer and the first plant to receive the milk, how trucking was arranged
for milk assembly, and how much of the producer payroll was handled by
the cooperatives. While some cooperatives chose not to respond to the
questions, enough did to make the survey representative.
Milk Assembly
Farmers shipping 33 percent of the cooperatives’ total producer supply were
within 25 miles of the plant of first receipt (table 7). Another 40 percent
were 25 to 75 miles, 18 percent 75 to 150 miles, and 9 percent over 150
miles. Compared with data submitted by cooperatives in 1973, farmers in
1980 were shipping milk somewhat farther to plants of first receipt.
Cooperatives headquartered in the East and West South Central Regions
and in the South Atlantic and Mountain Regions reported significantly
longer shipping distances. On the other hand, cooperatives in the East
North Central and Pacific Regions were able to procure 86 percent of their
farm supply within 75 miles of their receiving plants.
13
Trucking Arrangements
Use of contracts between the cooperative and haulers was reported by 59
percent of the 245 cooperatives providing information on trucking
arrangements (table 8). This represented 47 percent of the milk hauled by
the reporting cooperatives.
Use of cooperative-operated trucks was reported by 37 percent of the
cooperatives although only 19 percent of the milk was handled in this
manner.
Milk hauling by agreements between producers and haulers were reported
by 24 percent of the cooperatives. This type of arrangement accounted for
38 percent of the volume.
In the Eastern Region, 59 percent of the cooperatives reported the use of
contracts between cooperatives and haulers, but these cooperatives moved
only 39 percent of Eastern Region cooperative milk by contract haulers.
Also, a smaller percentage of cooperatives in this region operated their own
trucks than in other regions, as only 21 percent reported using this method.
The Central Region reported 52 percent of cooperatives using contracts
between cooperatives and haulers, with this method accounting for 58
percent of the milk. In this region, a large number, 50 percent, of
cooperatives reported operating their own trucks. These cooperatives,
however, moved only 14 percent of the milk produced in the region in their
own trucks.
In the Western Region, only 7 percent of the cooperatives had hauling
arrangements between producers and haulers. Cooperative contract haulers
were used by 83 percent of the reporting cooperatives in the West although
only 45 percent of the milk produced in the region was hauled by these
contractors. Just over half of the region’s milk was hauled by trucks
operated by cooperatives, with 55 percent of the cooperatives reporting this
method.
Producer Payroll
One measure of the degree that cooperatives control marketing programs is
whether the cooperative handles the member producers payroll.
Cooperatives were asked to report the percentage of their total producer
payroll they handled (table 9). The 270 cooperatives responding
represented 80 percent of milk marketed by cooperatives.
14
Only 17 percent of all reporting cooperatives, with 6 percent of the milk
reported handling from 0 to 29 percent of the producers payroll. On the
other hand, 83 percent of the cooperatives— 94 percent of the milk, handled
over 75 percent of their producer payroll. Bargaining associations with no
facilities had a much lower level of handling payroll. Some 37 percent of
these types of cooperatives handled little or none of the members’ payroll.
PLANT OPERATIONS
In 1980, cooperatives owned 698 plants that performed a variety of
marketing functions (table 10). As in 1973, almost 70 percent of these
plants were in the East and West North Central Regions, with 225 and 259
plants respectively. In third place, the Middle Atlantic Region included 54
plants. In other regions, plant numbers ranged from 15 in the East South
Central Region to 40 in the South Atlantic.
Just under 35 percent of these plants, or 242, served only as milk receiving
stations, down considerably from the 47 percent reported in 1973.
Cheesemaking was the most frequently performed manufacturing
operation, with 174 plants making natural cheese. This was only three fewer
than the number in 1973. More than 80 percent of the cooperative cheese
plants were in the two North Central Regions.
Other important milk manufacturing functions included buttermaking by 95
plants, down sharply from the 170 plants reported in 1973, and the
production of dry milk products by 122 plants. Forty-four percent of the 55
buttermaking plants were concentrated in the West North Central Region.
Most of the remaining buttermaking plants were in the East North Central
and Pacific Regions. Almost two-thirds of all drying operations were
concentrated in the two North Central Regions.
There were 123 cooperative plants engaged in fluid milk packaging. Unlike
the milk manufacturing plants, the packaging plants were scattered more
uniformly throughout all regions. In 1980, the West North Central Region
had the largest number, 26 plants, followed by the South Atlantic Region
with 23 plants.
Cooperatives reported 49 plants making ice cream and 44 making cottage
cheese scattered throughout the Nation in a pattern similar to the fluid milk
packaging plants.
15
Milk pasteurizer holding tube in plant of San Joaquin Valley Dairymen, Los Banos.
DAIRY PRODUCTS MARKETED
This section and the tabulations that follow describe the net volumes of
major dairy products marketed by cooperatives after subtracting
transactions between cooperatives. Volumes by region are based on the
headquarters locations of the cooperatives. Also, comparisons are made
between the net volumes marketed by cooperatives and total U.S.
production. Except for raw whole milk, tabulations show the number of
cooperatives marketing dairy products and the volume marketed by selected
size groupings. The tabulations by size groupings show both the pounds
marketed and the percentage of total cooperative sales without adjustments
for intercooperative transactions.
Raw Whole Milk
Raw whole milk is the commodity most often marketed by dairy
cooperatives. In 1980, net raw milk sales by 352 cooperatives amounted to
52.5 billion pounds or 55 percent of net total volume of raw milk received by
cooperatives (table 11). While this represented a slight increase over
pounds marketed in 1973, the raw milk sales as a percentage of total receipts
dropped significantly from 63 percent in 1973 and 57 percent in 1964,
reflecting a trend toward increased further processing and marketing by
cooperatives. During the past 7 years, the volume of raw milk marketed
increased in all regions except the Middle Atlantic while the percentage of
milk marketed in raw form decreased in all regions except the South
Atlantic.
Butter
Excluding intercooperative transfers, cooperatives distributed a net volume
of 733 million pounds of butter in 1 980 (table 1 2) . This volume is a 2 1 -
percent increase over the 1973 volume, but represents a slight drop in
percentage of total U.S. production.
While cooperatives in the Central Region accounted for almost 64 percent
of cooperative butter sales, significant sales increases occurred in the
Atlantic and Pacific Regions.
While the volume of butter distributed increased, the number of
cooperatives distributing butter continued to decline sharply, from 740 in
1964 to 207 in 1973 and to only 148 in 1980 (table 13). This reflects the
widespread adoption by cooperatives of high capacity continuous butter
churns.
17
Cooperatives’ share of the Nation’s natural cheese production continues to increase. Much of
the cheese is now made in large plants with automated equipment such as this Cheddaring
machine at the Kiel, Wisconsin plant of Lake to Lake Division of Land O’ Lakes.
In 1980, about 87 percent of the butter distributed by cooperatives was
distributed by those in the group handling 10 million pounds or more— only
15 percent of all cooperatives. Cooperatives distributing less than 10 million
pounds of butter experienced a 53-percent decline in volume from 1973 to
1980 and accounted for only 13 percent of volume distributed by
cooperatives in 1980, compared with 30 percent in 1973 and 54 percent in
1964.
Dry Milk Products
Excluding intercooperative transfers, cooperatives distributed 1.1 billion
pounds of dry milk products, 87 percent of the Nation’s production
(table 14). This volume included nonfat dry milk, dry buttermilk, and dry
whole milk. It represents a slight increase in cooperatives’ share of total
production, up from 85 percent in 1973, 72 percent in 1964, and only 57
percent in 1957.
Cooperatives in the Central Region distributed 62 percent of all dry milk
products of cooperatives, down from 74 percent in 1973. Increases in the
share of U.S. production distributed by cooperatives occurred in all regions
except the Atlantic.
The number of cooperatives distributing dry milk products declined to 48,
down from 62 in 1973 and 212 in 1964 (table 15). The number of
cooperatives distributing more than 10 million pounds of dry milk products
increased from 1973 levels while the nine associations each distributing
more than 40 million pounds accounted for about 60 percent of all
cooperative sales in 1980.
Cheese
The 1.87 billion pounds of cheese, excluding cottage cheese, distributed by
cooperatives in 1980 is more than double that distributed in 1973. While the
volume of total cheese made by all U.S. firms increased 48 percent, the
cooperative share, net of intercooperative transfers, also increased
significantly, from 35 percent in 1973 to 47 percent in 1980 (table 16).
Cooperatives in the Central Region continue to distribute the largest share
of cheese, accounting for 72 percent of cooperatives’ net sales. Substantial
increases in both the volume distributed and the share of the total
manufactured occurred in the Eastern Region. Increases reported in all
other regions were less.
19
Cooperative fluid milk processors such as the Valley of Virginia Cooperative Milk
Producers, shown here, now have a 16 percent share of national output. Plant in Springfield,
Virginia.
From 1973 to 1980 the number of cooperatives distributing cheese declined
15 percent— from 187 to 158— a fact reflecting a considerable level of
conversion to, or entry into, cheesemaking by cooperatives (table 17). This
15-percent drop was the smallest decrease of any major product category
tabulated. Cooperatives distributing less than 2.5 million pounds annually
declined by 30 percent to 89 cooperatives, while those distributing more
than 10 million pounds grew from 21 to 33 in this period. Just 12 large
cooperative cheese distributors accounted for two thirds of all cooperative
cheese sales in 1980.
Packaged Fluid Milk Products
Cooperatives distributed 8.2 billion pounds of packaged fluid milk products
in 1980, continuing an increase from 1964 in both volume and share of total
sales of all U.S. firms (table 18). This share was slightly more than 16
percent in 1980. The increase in volume represents a 22-percent increase
over the 1973 volume. In the same period (1973-80), U.S. sales declined by
9 percent.1
Cooperatives in the Northeast, South Atlantic, and Central Regions
experienced increases from 1973 to 1980 in both volume distributed and
their share of all sales. Of the total cooperatives in the three regions, those
in the Central Region had a 57-percent increase in volume distributed.
Those in the Pacific and Mountain Regions recorded a slight loss in both
volume and market share.
The number of cooperatives distributing packaged fluid milk products
decreased 31 percent from 85 in 1973 to 59 in 1980 (table 19). Size
concentration became more pronounced as the 27 cooperatives distributing
over 20 million quart-equivalents accounted for 96 percent of cooperatives
sales. Only 15 large-scale cooperative distributors of over 100 million
quart-equivalents each, held 79 percent of all cooperative sales in 1980.
Cottage Cheese
In 1980, cooperatives distributed over 220 million pounds of cottage
cheese, up 54 percent or 77 million pounds from the volume distributed in
1973 (table 20). The cooperative share of total U.S. production rose to 22
percent, the first significant increase since 1957.
'Pounds of packaged fluid milk distributed by cooperatives are based on reported
quart equivalents of products sold. Total industry sales are based on total pounds of
milk sold to plants and dealers less the whole milk equivalent used in manufacturing.
21
Ice cream novelties packaging at plant of East Coast Novelties Division, Capital Milk
Producers Association, Laurel, Maryland.
Cooperatives in all regions increased both distribution and their market
share during the 1973-80 period, led by cooperatives in the Northeast and
South Atlantic Regions where distribution nearly doubled. Actual volume
increased by 41 million pounds in the Central Region, the greatest increase
of any region.
The number of cooperatives distributing cottage cheese dropped from 64 to
44 in 1973 (table 21). As with fluid milk packaging, the larger cottage
cheese distributors are rapidly assuming a greater share of cooperative sales.
The seven cooperatives each distributing more than 10 million pounds a
year accounted for 63 percent of all cooperative sales in 1980.
Ice Cream and Ice Milk
Cooperatives continue to play a minor role in the distribution of ice cream
and ice milk. However, the cooperative share of the Nation’s production of
these frozen products doubled from 1973 to 1980, moving up from 5 to 10
percent (table 22).
Substantial increases in both the cooperative volume and share of total ice
cream and ice milk manufactured occurred in the Northeast and Central
Regions. In the South Atlantic and Mountain Regions both cooperative
volume and market share decreased slightly.
The number of cooperatives distributing these products dropped from 60 in
1973 to 38 in 1980, continuing the steady decline from 143 in 1964
(table 23). Just four cooperatives each with sales of more than 10 million
gallons distributed nearly 54 percent of total cooperative volume in 1980,
further reflecting the size concentration observed elsewhere in the
cooperative dairy processing industry.
Bulk Condensed Milk Products
Nearly half of the Nation’s production of evaporated and condensed milk is
shipped in bulk to other food processors for further processing. In 1980,
U.S. firms produced 952 million pounds of bulk condensed milk (table 24).
In that year, 23 cooperatives sold 139 million pounds or 15 percent of total
U.S. production, down from 21 percent sold in 1973. This probably reflects
increased usage of this product by cooperatives in their own operations for
production of other commodities such as dried milk products.
Of the 23 cooperatives reporting distribution of bulk condensed milk, 12
each sold more than 5 million pounds, accounting for 88 percent of all
23
cooperative sales (table 25). The six largest cooperatives reported average
sales of almost 15 million pounds each.
Condensed Whey
More cooperatives were engaged in distributing condensed whey in 1980
than in 1973, although net distribution decreased (tables 24 and 25). In
1980, the 16 cooperatives reporting sales sold a net of 51 million pounds, or
59 percent of U.S. production. Comparable data for 1973 showed that
cooperatives reporting sales of condensed whey sold only 38 percent of U.S.
production. However, both cooperatives and all U.S. firms reported a lower
volume of sales of this product in 1980, probably because more firms
further processed the whey into dried forms. In 1980, of all cooperatives
distributing condensed whey, six accounted for 81 percent of the total
distributed.
Dry Whey
From 1973 to 1980 the percentage of dry whey sold by cooperatives
increased sharply from 56 percent to 81 percent of total U.S. production
(table 24). In 1980, 26 cooperatives distributed 560 million pounds, net of
intercooperative transfers. As with many other products, some large-scale
cooperatives distributed most of the dry whey produced by cooperatives
(table 25). Just nine cooperatives, each distributing an average of over 62
million pounds, accounted for 83 percent of total sales of cooperatives.
Frozen Product Mix
In 1980, 29 cooperatives reported sales of 41.4 million gallons of frozen
product mix (tables 24 and 25). This was 7 percent of U.S. production,
down from 8 percent estimated in 1973. This does not include any ice cream
mix that was used by any cooperative to make ice cream.
As in 1973, 1980 data showed cooperatives largely divided into two
groups — 15 that distributed small quantities of less than 500,000 gallons a
year and 1 1 that distributed over a million gallons each annually.
Cooperative Concentration Ratios
Table 26 shows for both 1973 and 1980, the 4, 8, and 20 largest
cooperatives’ proportion of all cooperatives’ receipts of grade A milk from
farmers, milk processed or manufactured, and sales of selected products. It
also shows the larger cooperatives’ proportion of receipts, processed or
24
manufactured volume, and sales as a percent of total U.S. production.
However, it should be noted that the cooperatives included in each size
group are not identical. For example, the four largest cooperatives selling
butter are not also the four largest cooperatives selling cheese.
Data showing the share of cooperative sales by the larger cooperatives are
shares of gross sales and include intercooperative transactions. Data
reflecting sales by the largest cooperatives as a percentage of total U.S.
production, do not include intercooperative sales.
The 20 largest cooperatives, in terms of receipts of grade A milk, received
two-thirds of the grade A milk marketed by farmers through cooperatives,
about the same as in 1973. They marketed more than half of the total U.S.
volume. The 20 largest cooperatives with processing and manufacturing
operations accounted for slightly more than two-thirds of all processing
done by cooperatives, up from 59 percent in 1973. They also processed 24
percent of the total volume of milk processed by U.S. Firms, up significantly
from the 17 percent processed in 1973.
The 20 largest cooperatives in each of the following lines of business
increased their share of cooperative sales: packaged fluid milk distribution,
butter, and cheese, while the largest dry milk products distributors
decreased their share slightly.
The 20 largest cooperatives in each product group are becoming more
significant participants in the U.S. milk processing and manufacturing
industry. From 1973 to 1980 their share of sales of packaged fluid milk rose
from 9 to 14 percent; butter, from 51 to 53 percent; dry milk, from 72 to 74
percent; and cheese, from 25 to 36 percent of all U.S. production.
The four largest cooperatives in each product line continued to sell a
significant proportion of total cooperative volume, but the only products for
which their share showed increases from 1973 were packaged fluid milk and
cheese. However, the four largest cooperatives held a greater share of total
U.S. production of all products except butter and dry milk. This probably
reflected a trend among the very largest cooperatives to shift milk
manufacturing operations from butter-powder to natural cheese.
DISTRIBUTION AT RETAIL
Nearly all of the dairy products distributed by dairy cooperatives were sold
to wholesale outlets. However, 15 cooperatives reported that they owned
either retail food stores or food service outlets where they sold some of their
25
dairy ouput (table 27). Of these, 9 had only one outlet, and only 2
cooperatives sold more than 5 percent of their members’ milk through
these retail outlets.
FINANCIAL PROFILE
In order to do an effective job of marketing, dairy cooperatives must have
adequate financial strength. To assess the financial health of the industry,
cooperatives were asked to provide simplified balance sheets and operating
statements. Usable balance sheets were provided by 305 cooperatives,
representing 70 percent of all cooperatives and 89 percent of the raw milk
marketed through cooperatives. Also, 314 cooperatives, or 72 percent of
the total, provided usable operating statements, again representing 89
percent of raw milk. These data were used to construct a combined
cooperative balance sheet (table 28) and operating statement (table 29)
for their fiscal years ending before April 1, 1981.
The cooperatives reported combined total assets of $2.5 billion, an average
of $8.5 million each. Equity totaled $863 million or 34 percent of assets. For
comparison, according to a study made from 1976 data2 of 459 dairy
cooperatives, the equity was equal to 35 percent of their assets. A crude
measure of the ability of firms to pay their bills is the current ratio. For
1980, the combined current ratio was 1.25, compared with 1.27 for the 1976
sample. These two reports, 1976 and 1980, are not entirely comparable and
do not account for all cooperatives. However, it can be concluded, based on
the two simple measures, that the average dairy cooperative has maintained
the same financial condition.
Since a third (146 out of 435) of all cooperatives operate no facilities to
handle milk or milk products, it would be expected that their balance sheets
would be considerably different from the average cooperative. Some 75
cooperatives that did not operate facilities and that provided usable balance
sheets (representing 51 percent of cooperatives with no facilities and 71
percent of the raw milk receipts of cooperatives with no facilities) indicated
total assets were only $178 million, or an average of $2.4 million each.
Equity for these cooperatives was 29 percent of their assets and their current
ratio was only 1.09.
2Nelda Griffin, Roger Wissman, William Monroe, Francis Yager, and Elmer Purdue,
The Changing Financial Structure of Farmer Cooperatives , Farmer Cooperative
Research Report Number 17; U.S. Dept, of Agr.; Economics, Statistics, and
Cooperatives Service, 1980.
26
In comparison, the 230 cooperatives reporting that they operate at least
some facilities (representing 80 percent of all dairy cooperatives operating
facilities and 92 percent of the raw milk receipts of cooperatives with
facilities) had total assets of $2.4 billion or an average of $10.3 million.
Members of these 230 cooperatives owned 34 percent of their total assets
and had a current ratio of 1 .26.
The combined operating statement for the 314 cooperatives providing
usable statements revealed total operating income in excess of $15 billion,
more than 97 percent of which came from dairy sales (table 29). This
amount represented an average of $48.3 million gross income per
cooperative. The 314 cooperatives generated a net savings for members of
1.2 percent or, about 18 cents per hundredweight of all milk marketed.
For the 229 reporting cooperatives which operated facilities (representing
79 percent of all cooperatives operating facilities and 92 percent of the raw
milk receipts of cooperatives with facilities) the $12.7 billion in dairy sales
generated a savings of $158 million or about 19 cents per hundredweight of
all milk marketed. In contrast, the 85 reporting cooperatives that did not
operate facilities (representing 58 percent of all cooperatives without
facilities and 74 percent of the raw milk receipts of cooperatives without
facilities) had combined dairy sales of about $2 billion and net savings of
$17.1 million, or 12 cents per hundredweight of all milk marketed.
However, it should be noted that this comparison does not take into
account differences in pay price or other services that might contribute to
the differences.
27
Control center in the new milk processing plant of San Joaquin Valley Dairymen in Los
Banos.
Table 1 -Dairy cooperatives by type of operation and by region of cooperatives' headquarters, selected years
Region1
Processing and
manufacturing
dairy products
Operating milk and
cream receiving
facilities only
Not physically
handling dairy
products
Total
1964
1973
1980
1964
1973
1980
1964
1973
1980
1964
1973
1980
Number
New England
18
10
7
4
1
1
6
4
4
28
15
12
Middle Atlantic
22
14
15
34
15
5
109
104
90
165
133
110
East North Central
258
133
93
21
11
7
31
23
18
310
167
118
West North Central
453
85
42
91
97
77
20
2
5
564
184
124
South Atlantic
31
13
9
11
-
—
16
8
7
58
21
16
South Central
16
5
3
7
3
4
13
7
6
36
15
13
Mountain
17
14
9
1
3
1
10
3
5
28
20
15
Pacific
41
17
14
-
-
2
14
20
11
55
37
27
United States
856
291
192
169
130
97
219
171
146
1,244
592
435
Percent
69
49
44
13
22
22
18
29
34
100
100
100
’For States included in each region, see figure 1 .
Table 2— Cooperatives distributing selected dairy products, by region of cooperatives’ headquarters, selected years'
Region2
Item and
year
New
England
Middle
Atlantic
East
North
Central
West
North
Central
South
Atlantic
South
Central
Mountain
Pacific
Total
Number
Bulk whole milk
1964
25
160
112
294
46
33
17
43
730
1973
12
128
78
163
17
13
14
33
458
1980
10
102
60
120
12
13
12
23
352
Packaged fluid
milk products
1964
12
16
33
84
36
7
9
18
215
1973
8
10
14
16
13
3
9
12
85
1980
5
7
9
15
9
1
5
8
59
Bulk cream
1964
9
13
197
156
7
12
3
23
420
1973
6
8
116
55
8
4
5
6
208
1980
4
8
76
18
5
2
3
6
122
Ice cream
1964
3
11
15
55
28
5
9
17
143
1973
3
4
7
22
5
2
8
9
60
1980
2
4
7
12
3
1
4
5
38
Cottage cheese
1964
11
13
20
18
32
4
9
19
126
1973
4
8
12
9
12
2
9
8
64
1980
3
6
8
9
5
1
4
6
42
Natural cheese
1964
4
5
184
63
3
8
6
21
294
1973
3
5
115
43
2
3
8
8
187
1980
3
9
89
35
2
4
6
9
157
Butter
1964
10
14
143
478
29
14
17
35
740
1973
6
6
55
100
7
4
13
16
207
1980
4
9
41
65
4
3
7
15
148
Nonfat dry
milk
1964
6
7
52
105
4
12
10
16
212
1973
2
3
16
14
2
2
6
12
57
1980
2
5
11
11
2
2
4
11
48
'Data were tabulated by cooperative's headquarters location. One cooperative may distribute several products.
2For States included in each region, see figure 1 .
Table 3— Cooperatives’ share of milk delivered to plants and dealers, volume by region, selected years1
Region2
Item and year
New
England
Middle
Atlantic
South
Atlantic
Central
Mountain
Pacific
United
States
Million pounds
Handled by cooperatives3
1957
2,686
10,553
3,299
35,538
1,995
3,967
58,038
1964
3,877
13,079
4,176
47,812
2,683
5,116
76,743
1973
2,580
11,961
4,523
54,333
3,210
6,620
83,227
1980
4,317
10,716
5,222
61,671
3,834
9,874
95,634
U.S. total delivered to plants
and dealers
1957
3,951
15,832
6,584
59,277
3,473
9,261
98,378
1964
4,441
18,195
7,489
69,140
3,980
10,690
113,935
1973
4,002
16,335
8,198
63,605
4,620
13,063
109,823
1980
4,373
19,066
9,301
68,927
Percent
5,864
17,186
124,717
Cooperative percentage of
total
1957
68
67
50
60
57
43
59
1964
87
72
56
69
67
48
67
1973
64
73
55
85
69
51
76
1980
99
56
56
89
65
57
77
’Cooperative data were tabulated by their headquarters locations.
2For States included in each region, see figure 2.
3Handled either by physical receipt or by bargaining transactions. Volumes shown include both amounts marketed directly for farmers and small
amounts purchased from other concerns. For example, in 1980, cooperatives received 94,795 million pounds from farmers and 839 million pounds
from other concerns. These data do not include intercooperative transactions except possibly small amounts reported in purchases from other
concerns.
Table 4— Cooperatives’ share of milk marketed based on farm location, volume, and grade, by region, 1973 and 19801
Grade A
Manufacturing grade
Total
Year and region2
Coopera-
tives3
Volume
Marketing
share4
Coopera-
tives3
Volume
Marketing
share4
Coopera-
tives3
Volume
Marketing
share4
No.
Mil. lb.
Pet.
No.
Mil. lb.
Pet.
No.
Mil. lb.
Pet.
1973
New England
18
2,526
63
-
-
18
2,526
63
Middle Atlantic
139
1 2,405
77
4
49
39
143
1 2,454
76
East North Central
69
21,239
95
132
3,778
42
167
25,01 7
80
West North Central
92
8,886
97
176
8,379
72
187
1 7,265
83
South Atlantic
29
6,350
80
(5)
(5)
(5)
29
(5
78)
East South Central
10
4,010
88
4
67
6
12
4,077
73
West South Central
11
4,903
88
(5)
(5)
(5)
11
(5)
84
Mountain
20
2,585
77
8
775
60
22
3,360
73
Pacific
35
6,094
51
15
436
41
37
6,530
50
United States6
370
68,998
81
328
13,534
55
563
82,532
75
1980
New England
15
3,584
82
-
-
-
15
3,584
82
Middle Atlantic
108
11,761
62
4
69
87
112
1 1 ,830
62
East North Central
67
26,117
93
96
4,012
53
122
30,129
85
West North Central
93
1 1 ,804
92
121
6,134
71
131
1 7,938
84
South Atlantic
25
7,335
81
(5)
(5)
(5)
25
(5)
79
East South Central
14
4,166
84
4
81
12
15
4,247
75
West South Central
9
5,182
85
(5)
(5)
(5)
9
<5)
82
Mountain
15
3,863
87
6
513
37
17
4,376
75
Pacific
24
9,507
57
10
295
46
25
9,802
57
United States6
322
83,31 9
79
228
11,120
57
420
94,439
76
’includes milk either physically received by cooperatives or marketed by bargaining transactions. Includes only milk from farmer members, excluded
is milk received from cooperative and noncooperative firms.
2For States included in each region, see figure 3.
3Co-ops having members in the region, but not necessarily headquartered there.
4Co-op volume as a percentage of total milk sold to plants and dealers in the region during 1973 and 1980.
5Regions not shown when less than 3 co-ops reported or individual co-op operations might be disclosed.
6Numbers of cooperatives do not add to totals since some receive milk from more than one region.
Table 5 — Cooperatives' marketing of grade A and manufacturing grade raw whole milk, by region of cooperatives' headquarters
Region
Eastern
Central
Western
Total
Product and source
Co-ops
Volume
Co-ops
Volume
Co-ops
Volume
Co-ops
Volume
No.
Mil. lb.
No.
Mil. lb.
No.
Mil. lb.
No.
Mil. lb.
1973
Grade A milk.
Farmers
195
32,744
127
27,783
48
8,471
370
68,998
Non co-ops
25
406
6
47
10
146
41
599
Other co-ops
36
8,488
20
2,359
15
1,777
71
1 2,624
Total2
200
41,638
132
30,189
50
10,394
382
82,221
Manufacturing grade
milk:
Farmers
15
263
290
1 2,061
23
1,210
328
13,534
Non co-ops
3
48
11
46
3
2
17
96
Other co-ops
4
25
28
1,958
4
6
36
1,989
Total2
15
336
290
14,065
23
1,218
328
15,619
1980
Grade A milk:
Farmers
151
34,806
135
35,999
36
12,826
322
83,631
Non co-ops
15
431
5
88
6
56 ■
26
575
Other co-ops
36
5,400
13
2,854
15
2,421
64
10,675
Total2
156
40,637
137
38,941
39
15,303
332
94,881
Manufacturing grade
milk:
Farmers
12
271
202
10,084
14
808
228
11,163
Non co-ops
1
1
6
246
2
17
9
264
Other co-ops
5
98
23
1,307
4
140
32
1,545
Total2
12
370
203
1 1 ,637
15
965
230
12,972
’For States included in each region, see figure 4.
2Numbers of cooperatives do not add to totals since some receive milk from more than one source.
Table 6 -Utilization of cooperatively marketed grade A and manufacturing grade milk, by regions, 19801
Regior
,2
Eastern
Central
Western
Total
Product and source
Co-ops
Volume
Co-ops
Volume
Co-ops
Volume
Co-ops
Volume
No.
Mil. lb.
No.
Mil. lb.
No.
Mil. lb.
No.
Mil. lb.
Grade A:
Sold raw
Processed or manu-
142
28,857
124
23,565
35
8,856
301
61,278
factured
41
11,780
47
15,376
21
6,447
109
33,603
Total3
156
40,637
137
38,941
39
15,303
332
94,881
Manufacturing grade
milk:
Sold raw
Processed or manu-
7
97
125
3,176
7
181
139
3,454
factured
9
273
116
8,461
12
784
137
9,518
Total3
12
370
203
11,637
15
965
230
1 2,972
Total milk:
Sold raw
Processed or manu-
145
28,954
171
26,741
35
9,037
351
64,732
factured
45
12,053
104
23,837
23
7,231
172
43,121
Total3
162
41 ,007
226
50,578
41
16,268
429
107,853
'Data tabulated by cooperatives' headquarters locations.
2For States included in each region, see figure 4.
lumbers of cooperatives do not add to totals since some both sold raw milk and processed or manufactured dairy products. Also, some marketed
both grade A and manufacturing grade milk.
Table 7 — Distances cooperative milk is shipped from farm to plant of first receipt, by regions, 19801
Region2
Milk shipped
Under 25
miles
25 to 75
miles
75 to 150
miles
More than
150 miles
Total
Percent
New England
42
37
10
11
100
Middle Atlantic
25
49
14
12
100
East North Central
46
40
12
2
100
West North Central
32
38
18
12
100
South Atlantic
16
43
26
15
100
East South Central
10
15
50
25
100
West South Central
8
38
54
-
100
Mountain
22
33
31
14
100
Pacific
36
50
11
3
100
United States
33
40
18
9
100
'Computed from data for 230 cooperatives representing 62 percent of total receipts from farmers. Data were tabulated by cooperatives' headquarters
and not by plant location.
2For States included in each region, see figure 3.
Table 8 — Cooperatives' farm-to-plant milk hauling arrangements, by regions, 19731
Hauling
arrangement
Region
Eastern Central Western
Co-ops Milk Co-ops Milk Co-ops Milk
Total
Co-ops Milk
Percent
Trucks operated by
co-op
Contract between
co-op and hauler
Agreement between
producer and
hauler
Other
Total4
21 9
59 39
31 52
_J ft
100 100
50 14
52 58
22 28
7 ft
100 100
55 53
83 45
7 2
100 100
37 19
59 47
24 34
3 ft
100 100
'Data were tabulated by cooperatives' headquarters locations from 245 cooperatives representing 69 percent of total receipts from farmers.
2For States included in each region, see figure 4.
3Less than 0.5 percent.
4Numbers of cooperatives reporting do not add to totals since some reported more than one arrangement for hauling milk.
Table 9 — Producer payroll paid by cooperatives, 19801
Percentage Cooperatives with no Cooperatives operating All cooperatives
of producer operating facilities some facilities reporting
payroll Pounds of Pounds of Pounds of
paid by Number of raw milk Number of raw milk Number of raw milk
cooperatives co-ops received co-ops received co-ops received
Percent of responses
0-29
37
38
2
(2)
17
6
30 - 74
-
-
-
-
-
-
75-99
5
16
2
30
3
28
100
58
46
96
70
80
66
Total
100
100
100
100
100
100
Number
Cooperatives
reporting 114 156 270
'The 270 cooperatives reporting represent 62 percent of all cooperatives and 80 percent of the volume of raw milk received. The 1 1 4 reporting
cooperatives which had no operating facilities represent 78 percent of similar cooperatives and 74 percent of their raw milk receipts, whereas the
156 cooperatives operating facilities represent only 54 percent of all cooperatives with operating facilities and 82 percent of their volume.
2Less than 0.5 percent.
Table 10— Number of plants owned by cooperatives performing various marketing functions, by regions, 1980
Marketing
function
Region1
New
England
Middle
Atlantic
East
North
Central
West
North
Central
South
Atlantic
East
South
Central
West
South
Central
Mountain
Pacific
United
States
Number
Receive and ship milk only
10
15
64
127
11
3
7
3
2
242
Make natural cheese
4
9
105
35
1
2
3
7
8
174
Make processed cheese
0
2
1
2
-
—
—
3
1
9
Churn butter
6
6
15
42
1
1
3
7
14
95
Package fluid milk
8
17
16
26
23
7
3
11
12
123
Make dry products
5
9
27
50
1
3
5
7
15
122
Make condensed products
6
8
23
18
2
3
3
2
8
73
Make cottage cheese
3
3
8
9
8
-
1
4
8
44
Make ice cream
3
3
12
14
4
1
1
4
7
49
Not operated in 1980
4
3
3
5
-
-
-
-
-
15
Other
1
7
7
13
6
-
2
4
-
40
Total2
33
54
225
259
40
15
20
24
28
698
'For States included in each region, see figure 3.
^Numbers of plants do not add to totals since some perform more than one function.
Table 11 — Number of cooperatives reporting and volume of raw whole milk marketed, by regions, selected years'
Region2
Cooperatives reporting
Volume sold raw
Percentage of all milk
marketed by cooperatives
1957
1964
1973
1980
1957
1964
1973
1980
1957
1964
1973
1980
— Million pounds —
New England
(3)
25
12
10
2,116
3,066
2,074
2,270
79
79
80
53
Middle Atlantic
(3)
160
128
102
9,045
10,869
8,835
6,936
86
83
74
65
South Atlantic
(3)
46
17
12
2,632
2,801
2,903
3,485
80
67
64
67
Central
(3)
439
254
193
19,220
22,662
33,194
33,331
54
47
61
54
Mountain
(3)
17
14
12
891
1,362
1,720
2,025
45
51
54
53
Pacific
3/
43
33
23
2,309
2,683
3,454
4,448
58
52
52
45
United States
735
730
458
352
36,213
43,443
52,180
52,495
62
57
63
55
’Cooperative data were tabulated by their headquarters' locations. Adjusted for intercooperative transactions. Includes purchases from other
sources. Volume covered by bargaining is included.
2For States included in each region, see figure 2.
3Data not available.
Table 12-Volume and percentage of butter distributed by cooperatives compared with total U.S. production, by regions, selected
years'
Region2
Item
New
England
Atlantic
Central
Mountain
Pacific
United
States
1.000 pounds
Distributed by
cooperatives3
1957
2,088
8,401
733,275
32,803
39,113
81 5,680
1964
2,908
19,326
838,448
33,029
44,858
938,569
1973
6,523
23,967
465,014
20,645
88,568
604,717
1980
10,607
85,885
468,267
23,283
145,104
733,146
Total manufactured by
all firms
1957
2,128
38,515
1,251,177
59,203
61 ,825
1,412,848
1964
8,222
78,605
1 ,239,536
48,704
67,380
1,442,447
1973
7,539
52,313
666,417
39,150
153,199
918,618
1980
1 2,232
148,814
710,782
33,358
Percent
240,068
1,145,254
Cooperative percentage
of total
1957
98
22
59
55
63
58
1964
35
25
68
68
67
65
1973
87
46
70
53
58
66
1980
87
58
66
70
60
64
Cooperative data were tabulated by their headquarters’ locations.
2For States included in each region, see figure 2. Note that the Atlantic Region is a combination of the Middle and South Atlantic Regions.
3Adjusted for intercooperative transactions. Includes purchases from other sources.
Table 13 -Size groups of dairy cooperatives distributing butter, for selected years
Size groups (1,000 pounds)
Less TJ500- 2,500- 5,000- 10,000- 20,000-
Item than 500 500-999 2,499 4,999 9,999 19,999 and over Total
Number
Number of
cooperatives
1964
354
136
142
64 25
8
11
740
1973
120
20
22
19 15
5
6
207
1980
94
9
9
4 9
Percent
11
12
148
Percentage of
cooperatives
1964
48
18
19
9 3
1
2
100
1973
58
10
11
9 7
2
3
100
1980
64
6
6
3 6
1,000 pounds
7
8
100
Group volume1
1964
49,999
100,011
212,730
225,296 173,430
105,600
537,355
1 ,404,421
1973
8,534
15,331
33,123
70,975 105,132
66,149
467,698
766,942
1980
7,434
6,381
14,025
17,312 64,315
Percent
160,254
643,754
913,475
Group volume as
percentage of total
cooperative volume
1964
4
7
15
16 12
8
38
100
1973
1
2
4
9 14
9
61
100
1980
1
1
2
2 7
17
70
100
Volume not adjusted for intercooperative transactions.
Table 14— Volume of dry milk products distributed by cooperatives compared with total U.S. production,
by regions, selected years1
Region2
Item
New
England
Atlantic
Central
Mountain
Pacific
United
States
1,000 pounds
Distributed by
cooperatives3
1957
12,276
38,603
851,126
61,546
43,432
1 ,006,983
1964
22,506
89,513
1 ,460,362
64,526
72,120
1 ,709,027
1973
1 3,694
63,186
664,576
30,020
1 22,889
894,365
1980
34,276
142,347
697,531
26,364
224,883
1,125,401
Total manufactured by
all firms
1957
28,442
171,183
1 ,409,747
66,826
89,021
1,765,219
1964
42,106
288,806
1 ,870,705
65,096
1 1 1 ,300
2,378,013
1973
13,944
92,669
721,664
31,062
188,223
1 ,047.562
1980
34,281
217,848
695,498
23,905
322,690
1 ,294,222
Percent
Cooperative percent
of total
1957
43
23
60
92
49
57
1964
53
31
78
99
65
72
1973
98
68
92
97
65
85
1980
100
65
4100
41 10
70
87
'Cooperative data were tabulated by their headquarters' locations.
2For States included in each region, see figure 2. Altantic Region is the combination of Middle and South Atlantic Regions.
3Adjusted for intercooperative transactions. Includes purchases from other sources.
4Reflects slightly different reporting periods and/or inventory adjustments.
Table 15— Size groups of dairy cooperatives distributing dry milk products, selected years
Size groups (1,000 pounds)
Item
Less
than 1 ,000
1 ,000-
2,499
2,500-
4,999
5,000-
9,999
10,000-
19,999
20,000-
and over
Total
Number
Number of
cooperatives
1964
39
22
38
62
29
22
212
1973
11
10
3
18
10
10
62
1980
5
4
3
6
Percent
11
19
48
Percentage of
cooperatives
1964
19
10
18
29
14
10
100
1973
18
16
5
29
16
16
100
1980
10
8
6
13
1,000 pounds
23
40
100
Group volume1
1964
15,317
41 ,027
145,240
438,347
407,704
1,395,086
2,442,721
1973
2,740
16,234
10,336
127,045
136,488
778,198
1,071,041
1980
1,421
6,754
10,734
49,107
Percent
152,999
1,058,533
1 ,279,549
Group volumes as
percentage of total
cooperative volume
1964
(2)
2
6
18
17
57
100
1973
(2)
1
1
12
13
73
100
1980
<2)
1
1
3
12
82
100
’Volume not adjusted for intercooperative transactions.
2Less than 0.5 percent.
Table 16— Volume of cheese marketed by cooperatives compared with total U.S. production, by regions, selected years1
Region2
Item
Eastern
Central
Mountain
Pacific
United
States
1,000 pounds
Cheese marketed by
cooperatives3
1957
5,044
206,661
14,274
26,966
252,945
1964
10,435
312,492
21,120
21 ,855
365,902
1973
39,025
798,830
61 ,037
27,555
926,447
1980
336,302
1,347,041
106,424
83,468
1,873,235
Total manufactured by
all firms
1957
132,309
1,190,665
45,460
38,995
1 ,407,429
1964
180,287
1 ,444,242
61,355
44,689
1 ,730,573
1973
300,841
2,161,617
133,354
89,538
2,685,350
1980
560,155
2,951,683
211,135
Percent
261 ,293
3,984,266
Cooperative percent
of total
1957
4
17
31
69
18
1964
6
22
34
49
21
1973
13
37
46
31
35
1980
60
46
50
32
47
Cooperative data were tabulated by their headquarters locations. Includes all types of cheese except cottage cheese.
2For States included in each region, see figure 2. Eastern Region is combination of New England, Middle Atlantic, and South Atlantic Regions,
includes purchases from other sources, some of which may be manufactured in another area. Does not include purchases from other cooperatives.
Table 17— Size groups of dairy cooperatives distributing cheese, selected years
Size groups (1,000 pounds)
Less
500-
1 ,000-
2,500-
5,000-
10,000 and
Item
than 500
999
2,499
4,999
9,999
over1
Total
Number
Number of cooperatives
1964
143
57
63
16
9
6
294
1973
57
31
40
27
11
21
187
1980
41
12
36
23
13
33
158
Percent
Percent of cooperatives
1964
49
19
21
6
3
2
100
1973
31
17
21
14
6
11
100
1980
26
8
23
14
8
21
100
1,000 pounds
Group volume2
1964
26,939
41,553
99,881
54,043
59,222
130,656
412,294
1973
9,215
24,575
63,565
89,500
76,870
799,492
1 ,063,21 7
1980
4,602
8,506
63,606
76,520
90,251
1,768,986
2,012,471
Percent
Group volume as
percentage of total
cooperative volume
1964
7
10
24
13
14
32
100
1973
1
2
6
9
7
75
100
1980
(3)
(3)
3
4
4
88
100
Vor 1980, the largest size category can be more completely shown as follows:
Size groups (1,000 pounds)
10,000-
20,000-
40,000-
100,000
Item
1 9,999
39,999
99,999
and over
Number of cooperatives
13
8
7
5
Percent of cooperatives
8
5
5
3
Group volume (1,000 lbs.)
202,297
237,479
342,921
986,289
Percent of total volume
10
12
17
49
zVolume not adjusted for intercooperative transactions.
3Less than 0.5 percent.
Table 18— Volume of packaged fluid milk products distributed by cooperatives and all processors compared with estimated U.S.
total, by regions, selected years1
Region
Distributed b
cooperatives
S
Total distributed by
all processors4
Cooperative percentage
of total
1964
1973
1980
1964
1973
1980
1964
1973
1980
Million pounds
Percent—
Northeast
1,173
1,847
1,945
14,208
13,600
13,377
8
14
15
South Atlantic
974
1,077
1,149
5,732
7,541
6,660
17
14
17
Central
1,635
2,606
4,097
23,172
24,628
20,332
7
11
20
Mountain
204
363
299
1,944
2,455
2,508
10
15
12
Pacific
785
822
711
7,198
7,412
7,755
11
11
9
United States
4,771
6,715
8,201
52,254
55,636
50,632
9
12
16
'Cooperative data were tabulated by their headquarters locations. Based on product pounds.
2For States included in each region, see figure 2. Northeast Region is the combination of New England and Middle Atlantic Regions.
3Adjusted for intercooperative transactions. Based on reported quart equivalent of products sold.
4Based on total pounds of milk sold to all plants and dealers less whole milk equivalent used in manufactured products.
Table 19— Size groups of dairy cooperatives distributing packaged fluid milk product, selected years
Size groups
Number of
co-ops
Percentage of
co-ops
Group volume1
Percentage of total
co-op volume
(1,000 quarts)
1964
1972
1980
1964
1973
1980
1964
1973
1980
1964
1973
1980
—Number-
-Percent--
— 1,000
quart equivalent —
— Percent—
Less than 1 ,000
84
14
10
39
16
17
24,684
3,566
1,512
1
<2)
(2)
1,000 - 2,499
22
4
3
10
5
5
33,535
7,626
5,524
2
<2)
<2)
2,500 - 4,999
30
12
5
14
14
8
1 08,372
45,191
1 7,936
5
1
<2)
5,000 - 9,999
26
8
9
12
9
15
183,848
59,676
63,302
8
2
2
10,000 - 19,999
21
10
5
10
12
8
297,560
151,476
73,132
13
5
2
20,000 and over3
32
37
27
15
44
45
1,575,774
2,855,926
3,662,187
71
91
95
Total
215
85
59
100
100
100
2,223,773
3,123,461
3,823,593
100
100
100
'Volume not adjusted for intercooperative transfers.
2less than 0.5 percent.
3For 1980 the largest size category can be more completely shown as follows:
Size groups
Number of
co-ops
Percentage
of co-ops
Group
volume
Percentage of total
co-op volume
20,000 - 49,999
6
10
199,526
5
50,000 - 99,999
6
10
423,304
11
100,000 and over
15
25
3,039,357
79
Table 20— Volume of cottage cheese distributed by cooperatives compared with total U.S. production,
by regions, selected years1
Region2
Distributed bv
cooperatives3
Total manufactured
by all firms
Cooperative percent
of total
19574
1964
1973
1980
1957
1964
1973
1980
1957
1964
1973
1980
-1,000 pounds-
— Percent —
Northeast
15,341
18,021
27,330
46,966
138,102
172,658
251,608
241,791
11
10
11
19
South Atlantic
6,075
7,986
1 1 ,960
21,769
30,551
41,620
77,671
50,652
20
19
15
43
Central
48,310
66,613
67,289
108,666
350,305
422,523
482,274
444,438
14
16
14
24
Mountain
6,920
10,689
8,535
10,061
30,090
42,050
57,865
65,117
23
25
15
15
Pacific
19,569
26,867
28,182
33,220
145,237
181,901
216,804
202,384
13
15
13
16
United States
96,215
130,176
143,296
220,682
694,285
860,752
1 ,086,222
1 ,004,382
14
15
13
22
'Cooperative data were tabulated by their headquarters locations.
2For States included in each region, see figure 2. The Northeast Region is a combination of the New England and Middle Atlantic Regions.
3Adjusted for intercooperative transactions. Includes purchases from other sources.
Total manufactured by all cooperatives for 1957 includes creamed cottage cheese only, while that for 1964, 1973, and 1980 includes both creamed
and partially creamed.
Table 21 —Size groups of dairy cooperatives distributing cottage cheese, selected years
Size groups
(1,000 pounds)
Number of
co-ops
Percentage of
co-ops
Group volume
Percentage of total
co-op volume
1964
1973
1980
1964
1973
1980
1964
1973
1980
1964
1973
1980
— Number-
....
Percent-
1,000 pounds-—
-Percent-
....
Less than 500
82
28
16
64
43
36
10,515
3,323
1,716
8
2
1
500 - 999
15
10
3
12
16
7
10,302
7,193
2,611
8
5
1
1 ,000 - 2,499
15
9
7
12
14
16
22,576
15,355
10,202
17
11
4
2,500 - 4,999
7
7
4
6
11
9
24,265
25,993
15,748
19
18
7
5,000 and over1
7
10
14
6
16
32
62,518
91,432
201 ,881
48
64
87
Total
126
64
44
100
100
100
130,176
143,296
232,158
100
100
100
'Volume not adjusted for intercooperative transactions.
2For 1980 the largest size category can be more completely shown as follows:
Number of
Percentage
Group
Percentage of total
Size groups
co-ops
of co-ops
volume
co-op volume
5,000 - 9,999
7
16
56,818
24
10,000 and over
7
16
1 45,063
63
Table 22— Volume of ice cream and ice milk distributed by cooperatives compared with total U.S. production, by regions
years1
, selected
Region2
Item
Northeast
South
Atlantic
Central
Mountain
Pacific
United
States
1,000 gallons
Distributed by coopera-
tives3
19574
7,220
1,761
9,349
900
11,961
31,191
1964
6,645
10,613
21,748
3,029
10,180
52,215
1973
7,112
9,834
28,758
3,638
9,405
58,747
1980
37,317
9,765
54,198
3,528
13,417
118,225
Total manufactured
by all firms
1957
210,327
94,759
332,061
27,634
93,330
758,111
1964
247,270
133,006
420,276
34,077
119,961
954,590
1973
275,554
1 52,990
528,596
44,182
157,751
1,159,073
1980
269,126
164,240
512,382
53,880
Percent
168,741
1,168,369
Cooperative percentage
of total
1957
3
2
3
3
13
4
1964
3
8
5
9
8
5
1973
3
6
5
8
6
5
1980
14
6
11
7
8
10
'Cooperative data were tabulated by their headquarters locations.
2For States included in each region, see figure 2. The Northeast Region is combination of the New England and Middle Atlantic Regions.
3Adjusted for intercooperative transactions. Includes purchases from other sources.
4Amounts do not include a small amount of ice milk.
Table 23 — Size groups of dairy cooperatives distributing ice cream and ice milk, selected years
Size groups
(1,000 gallons)
Number of
co-ops
Percentage of
co-ops
Group volume1
Percentage of total
co-op volume
1964
1973
1980
1964
1973
1980
1964
1973
1980
1964
1973
1980
--Number-
— Percent -
...
-1,000 gallons-—
- Percent -
....
Less than 100
87
29
14
61
48
37
2,523
490
466
5
1
t1)
100 - 999
39
12
6
27
20
16
1 1 ,306
5,895
1,580
22
10
1
1 ,000 and over3
17
19
18
12
32
47
38,603
52,362
116,287
74
89
99
Total
143
60
38
100
100
100
52,432
58,747
118,333
100
100
100
Volume not adjusted lor intercooperative transactions.
2Less than 0.5 percent.
3For 1980 the largest size category can be further divided as follows:
Size groups
(1,000 gallons)
Number of
co-ops
Percentage
of co-ops
Group
volume
Percentage of total
co-op volume
1 ,000 - 1 ,999
3
8
4.037
3
2,000 - 3.999
6
16
17,186
15
4,000 - 9.999
5
13
31,702
27
10.000 and over
4
10
63,362
54
Table 24 — Volume of selected products distributed by cooperatives compared with total U.S. production, 1973 and 1980
Product
Distributed bv
cooperatives'
Total U.S.
manufactured
Cooperative
percentage of total
1973
1980
1973
1980
1973
1980
— Million pounds —
- — Percent- —
Bulk condensed milk
2237 "
139
1,115
952
221
15
Condensed whey
67
51
174
86
38
59
Dry whey
433
560
772
690
56
81
— Thousand pounds —
Frozen product
mix3
245,209
41 ,435
613,522
634,555
28
7
'Adjusted for intercooperative transactions. Includes purchases from other sources other than cooperatives.
Revised.
frozen product mix sold by cooperatives was all reported as ice cream mix, whereas total U.S. manufactured is the sum of ice cream mix, ice milk
mix, and milk sherbert mix.
Table 25 — Cooperatives distributing selected dairy products, volume by size groups, 1973 and 1980
Product and co-op
Number of
cooperatives
Percentage of
cooperatives
Group volume1 2
Percentage of co-op
total volume
size group
1973
1980
1973
1980
1973
1980
1973
1980
Number —
Percent —
— Thousand pounds —
—Percent —
Bulk condensed milk:
Less than 5 million pounds
218
11
55
48
235,21 7
19,412
14
12
5.0 to 9.9 million pounds
27
6
21
26
241 ,846
41 ,990
17
28
10 million pounds and over
28
6
24
26
21 75,208
91,032
69
60
Total
233
23
100
100
z252,271
152,434
100
100
Condensed whey:
Less than 1 million pounds
3
4
25
25
840
676
1
(3)
1.0 to 9.9 million pounds
6
6
50
38
15,747
26,746
24
18
10 million pounds and over
3
6
25
38
49,815
118,665
75
81
Total
12
16
100
100
66,402
146,087
100
100
Dry whey:
Less than 5 million pounds
20
9
62
35
33,335
17,815
8
3
5.0 to 19.9 million pounds
6
8
19
30
51,463
98,564
12
14
20 million pounds and over
6
9
19
35
347,977
560,642
80
83
Total
32
26
100
100
432,775
677,021
100
100
— Thousand Qallons ■
Frozen product mix:
Less than 500,000 gallons
228
15
58
52
22,838
1,809
6
4
500 to 999 Thousand gallons
26
3
13
10
24,373
2,108
10
5
1 million gallons and over
21 4
11
29
38
238,998
37,525
84
91
Total
48
29
100
100
246,209
41,442
100
100
'Volume not adjusted for intercooperative transactions
2Revised.
3Less than 0.5 percent.
Table 26— Percentage of grade A milk received from farmers, milk processed or manufactured, and selected product sales for
largest dairy cooperatives, 1 973 and 1 980
Receipts of
Milk
Sales
grade A
milk1
processed or
manufactured
Packaged
fluid milk
Dry milk
Butter products
Natural
cheese3
Item
1973 1980
1973 1980
1973 1980
1973 1980 1973 1980
1973 1980
-Percent-
Share of total co-op volume:
4 largest co-ops
38
32
34
32
8 largest co-ops
51
45
42
47
20 largest co-ops
67
66
59
68
Share of total U.S. volume:2
4 largest co-ops
31
26
10
19
8 largest co-ops
41
36
12
27
20 largest co-ops
54
52
17
40
-Percentage of all cooperative sales-
35
39
54
48
53
41
40
53
51
58
65
61
68
56
54
73
75
89
79 84 85 84
— Percentage of total U.S. production-
74
78
4
6
34
26
46
36
13
19
6
9
41
36
57
50
18
26
9
14
51
53
72
74
25
36
’Grade A milk received from farmers.
2Adjusted to exclude intercooperative transactions,
includes processed cheese sold by cooperatives in 1980.
NOTE: Groups of cooperatives may change from function to function.
Table 27 — Number of cooperatives reporting retail outlets, number of establishments, and number of cooperatives reporting
percentage of milk marketed via each type of outlet
Number of cooperatives
reporting percent of milk
Type of outlet
owned
Number of
cooperatives
reporting
Number of
establish-
ments
marketed via each
type of outlet
0-11
11-75
76 - 100
Retail food store
11
453
Number
7
1
Food service
establishment
5
7
5
-
-
Total1
15
460
13
1
1
'Numbers of cooperatives do not add since one cooperative reported owning both types of establishments.
Table 28 — Combined balance sheet for dairy cooperatives, 1980
All
cooperatives
reporting (305) 1
Cooperatives
operating some
facilities (230)
Cooperatives
not operating
facilites (75)
Item
Total
Percentage
of total
assets
Total
Percentage
of total
assets
Total
Percentage
of total
assets
$1,000
Percent
$1,000
Percent
$1,000
Percent
Current assets
1,613,231
63.5
1,484,549
62.9
1 28,682
72.2
Fixed assets
636,484
25.1
622,242
26.4
14,242
8.0
Other assets
288,699
11.4
253,303
10.7
35,396
19.8
Total assets
2,538,414
100.0
2,360,094
100.0
1 78,320
100.0
Current
liabilities
1 ,293,052
51.0
1,174,493
49.8
118,560
66.5
Long-term
liabilities
381 ,806
15.0
373,346
15.8
8,459
4.7
Total
liabilities
1,674,858
66.0
1 ,547,838
65.6
127,019
71.2
Equity
863,556
34.0
812,255
34.4
51,301
28.8
Liabilities
and equity
2,583,414
100.0
2,360,094
100.0
178,320
100.0
'The 305 cooperatives providing usable balance sheets represent 70 percent of the dairy marketing cooperatives and 89 percent of the milk
marketed cooperatively.
Table 29 — Combined operating statement for dairy cooperatives, 19801
All
cooperatives
reporting (31 4)2
Cooperatives
operating some
facilities (229)
Cooperatives
not operating
facilites (85)
Item
Total
Percentage of
total operating
income
Total
Percentage of
total operating
income
Percentage of
total operating
Total income
$1,000
Percent
$1,000
Percent
$1,000
Percent
Dairy product sales
14,770,260
97.4
12,759,844
97.5
2,010,416
97.1
Nondairy sales
226,506
1.5
200,468
1.5
26,038
1.3
Other operating income
165,328
1.1
132,385
1.0
32,943
1.6
Total operating
income
15,162,094
100.0
13,092,697
100.0
2,069,397
100.0
Cost of products sold
13,670,912
90.2
1 1 ,668,360
89.1
2,002,552
96.8
Gross margin
1,491,182
9.8
1 ,424,337
10.9
66,845
3.2
Operating, sales, and
administrative expenses
1 ,297,558
8.5
1 ,245,455
9.5
52,103
2.5
Other income (expenses)
(18,468)
(0.1)
(20,847)
(0.2)
2,379
0.1
Net savings (losses)
175,156
1.2
158,035
1.2
17,121
0.8
No adjustment was made for intercooperative transactions.
?The 314 cooperatives providing usable operating statements represent 72 percent of the cooperatives and 89 percent of the raw milk marketed by
cooperatives.
U.S. Department of Agriculture
Agricultural Cooperative Service
Agricultural Cooperative Service (ACS) provides research,
management, and educational assistance to cooperatives to
strengthen the economic position of farmers and other rural resi-
dents. It works directly with cooperative leaders and Federal and
State agencies to improve organization, leadership, and opera-
tion of cooperatives and to give guidance to further development.
The agency (1) helps farmers and other rural residents develop
cooperatives to obtain supplies and services at lower cost and to
get better prices for products they sell; (2) advises rural residents
on developing existing resources through cooperative action to
enhance rural living; (3) helps cooperatives improve services and
operating efficiency; (4) informs members, directors, employees,
and the public on how cooperatives work and benefit their mem-
bers and their communities; and (5) encourages international
cooperative programs.
ACS publishes research and educational materials and issues
Farmer Cooperatives magazine. All programs and activities are
conducted on a nondiscriminatory basis, without regard to race,
creed, color, sex, or national origin.
US. GOVERNMENT PRINTING OFFICE: 1984 - 421-227 - 814/10058
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